Editorial

Dear Insiders,
The first two professional visitor's days of the ITB 2013 were very busy, the mood unclouded in spite of persistent economic uncertainties. Details on this next week in the calm as our team is still on the move in Berlin. Additionally today, the first sales weekend at the trade show begins – we shall see what it brings.
The ITB Convention by all means enjoyed great resonance once again. The "ITB Hospitality Day" designed by us was once again among the best-visited conferences with 2,142 visitors and marked a new record of its own. In the tenth year of the ITB Convention the important barrier of 10,000 Hospitality Day visitors was broken - we count 10,908 in total!
Only a couple pieces of important news today from the investment forum, IHIF – from Wyndham/Grand City, Fattal, Steigenberger and from the young German prizeotel. It was rather tumultuous behind the scenes because it has been a long time since the appointment plan was not filled by talks with CEOs and top developers. Each one provided powerful acceleration.
In several talks, also before the trade show, hoteliers expressed their distribution worries, which is why we point today to a new book on price strategies.
Appropriate with the tourism week today, the second part on the subject of resorts in which the seven chains questioned express themselves on the trends.
The eco-luxury chain, Six Senses, is now choosing the path from resorts to city hotels. The new CEO of Six Senses, Neil Jacobs talks about the new focus 'urban resorts' and the new development company.
Moreover, we are beginning a new main focus with today's issue: Online law. In the future, IT and eCommerce specialised lawyer, Peter Hense, will comment on developments within this increasingly important segment; he also counsels the members of the German Hotel Association.
How did you like the IHIF and ITB? Write to me with your impressions! – The full editorial …

Dear Insiders,
Motel One need hardly advertise itself. Offers seem to arrive of their own accord. Just a few days ago, I again met CEO Dieter Mueller for a background interview, far away from the pressures of the headlines. Nevertheless, it was still very interesting. And so he explains today why he prefers to be present only in top locations such as in front of Berlin's Memorial Church, why he is sticking to fixed prices in yield-mad Great Britain and why he's not interesting in an IPO and has no intention of selling.
From Wednesday, ten thousands of tourism experts will make their pilgrimage to the ITB. Rising tourism figures indicate positive business, despite the crisis. The European Travel Commission will present a one million euro campaign at the ITB - and today it explains it to us. The aim is to attract more Asians and South Americans to Europe.
Fitting here, is the first part in a survey on resorts managed by global chains: Accor, Hilton, Jumeirah, Kempinski, Marriott, Meliá and Starwood Hotels set out the significance of leisure hotels for their portfolios.
We also present the latest panel at the hotel conference "ITB Hospitality Day": mobile. The top-class talk round will consider what is possible with this virtual power... On Thursday, March 7, 4-5 p.m. in Hall 7.1b/London Room. Entrance free.
The hotel conference will also for the first time be broadcast LIVE on the internet. Full-length video recordings of the individual talk rounds will also be available one day after the conference. All links are always provided on our page 1! From March 15, our website will also include summaries of the individual panels.
And last but not least: Visit us and our stand partners at the "World of Hospitality" in Hall 9/109. Experts look forward to your questions. See page one for who's on board! The brand new "hospitalityInside SPECIAL ITB" will also be available at the stand and at the conference - get your own free copy. Alternatively, take a look at our bilingual e-magazine which goes online today. Click on the SPECIAL banner, send the link! – The full editorial …

Dear Insiders,
Grand City Hotels, the quickest-growing hotel group on the German market will in future operate 33, then later 43, of its hotels under a Wyndham brand. This is the biggest overnight "expansion" since 2002: Then, the Spanish NH Hoteles chain gained presence in Germany through the merger with Astron Hotels.
Wyndham's coup is to the detriment of previously good franchise relationships between Grand City and other partners Accor, IHG and Best Western though. At the end of last week, Grand City terminated franchise agreements with these companies more or less within notice. IHG takes the biggest hit: It will lose the Crowne Plaza Berlin to Wyndham - four weeks before opening! Behind the scenes, things are boiling away.
A week ago, the hostel group Meininger was sold. Managing Director Sascha Gechter explains how the company became attractive to a UK-listed company within 14 years and why the sale was completed now. He expects significant restructuring of the hostel market.
There is also movement again in the plans for Buddha Bar Hotels and Virgin Hotels. IHG, Marriott, Accor, Motel One and Orient-Express have posted their 2012 results. This and more news today.
Also on our Page 1 today, we present our 12 top-class partners for the ITB joint stand "World of Hospitality" in Hall 9, including their e-mail addresses. Making appointments will therefore be much easier.
It's also time to register for the Cornell-/EHL-ITB reception and for the Cornell breakfast at the ITB! The countdown for Berlin has begun. – The full editorial...

Dear Insiders,
From July 22, 2013, the EU AIFM directive will take effect. It draws a line in the history of fund finance. This has a direct effect on hotels as they increasingly look to fund investors for finance.
As I see it, finance will be one of this year's key issues. The discussion is inescapable, as the chains and banks alike grow increasingly risk-averse. The gap continues to widen.
How is the famed "Mittelstand", the SMEs expected to survive here? One area of hospitality particularly concerned by this trend is Austria's resort industry. Discussions at this year's Austrian Hoteliers Association were correspondingly intense. The Austrian Hotel and Tourism Bank now intends to step up the finance it provides to SMEs. But there are arguments and restrictions from all sides. Even smaller chains like Explorer Hotels need capital if they are to expand. Where are creative young companies like this one to find their motivation?
A lucrative location is often half the rent for many operators. That Travel Charme Hotels has recently opened a hotel in Austria's idyllic no-man's land and reported a "full house" from the get go should therefore raise quite a few eyebrows. The secret is a unique concept which even insiders appear to have little knowledge of: SaMo - from the German "Sanfte Mobilität". For me, an encouraging example of niche thinking.
Would you like to think more outside the box? Listen to boutique hoteliers Christoph Hoffmann from Germany and Loh Lik Peng from Singapore on the CEO panel at the ITB hotel conference on March 7, or to keynote speaker Claus Sendlinger, CEO of Design Hotels, who speaks about the Hotels of Tomorrow. More on our page 1.
In other news: Meininger takeover, TUI management change, Heiligendamm loans, Paris elements, Best Western priorities, Rezidor results 2012. – The full editorial …

Dear Insiders,
Is the luxury hotel industry the big loser after the crisis? Is a wave of insolvencies looming on the horizon? And of all places in Germany - the stable and internationally highly praised hotel country? After the insolvencies of InterContinental Hamburg and the current insolvency of Parkhotel Bremen, the Fairmont Vier Jahreszeiten Hamburg was sold under price this week too. One thing is certain: Germany's 5-star hotels are hanging by a thread.
The evaluation of the consultants and bankers is supported by another current market analysis of PKF hotelexperts Munich. The situation in Great Britain is also difficult and unstable, as a recent report by Deloitte reveals.
In this context, the information provided by Vienna International is motivating: CEO Andreas Karsten talks of high profits in the last year. And he plans to expand – in Germany, driven by midscale and mixed use.
Financial experts are starting to get interested in the health market. Interestingly, a combination of hotel and health care has been developed in Italy, financed by private investors. However, will this be the kick-off of a wave? My opinion is: Let's wait and see! Despite all theoretical market potentials.
The hotel industry will have to find new ways to inspire young people as employees and guests. Two panels at this year's hotel conference at the ITB, the "ITB Hospitality Day", are devoted to "young travellers" and "Generation Y". More on our front page.
From the news: businesses from Qatar purchase luxury hotel properties in Berlin and France; the Germans remain fond of travelling in 2013; Starwood Hotels presented its annual report 2012, and more. The sudden departure of Four Seasons' CEO Katie Taylor this week was a surprise. In addition, Dr. Herbert Ebertz died of cancer on Wednesday. The funds initiator expanded Dorint Hotels into a chain. – The full editorial …

Dear Insiders,
Now even England's influential Travelodge chain has asked its Prime Minister to reduce VAT drastically. And the European umbrella organisation Hotrec are to do the utmost for a European flat rate. Studies demonstrate the dependence on diminished value added tax and jobs. Movement comes from the topic once again and it is welcome to be at the European level this time! This week also the Federal Council of Switzerland outlined a new plan for reduced taxes.
Taxes are among the determining frame conditions of the operational business. Today, however, the greatest problems always arise in hotel financing – and this is valid for the whole of Europe. My colleague, Beatrix Boutonnet, swept back from the convention of real estate surveyors with the question "Do we fall into the real interest rate trap?" Surveys prove that an increasing number investors fear for their money. The "Investment Climate Index" by Union Investment is far more positive.
The supposed "distribution trap" of the OTAs leaves no hotelier indifferent. So similar cries for help from the industry in Austria as well as Germany can be heard. While the Austrians await the soon to be served solid study, the Germans only continue to moan about it.
ITB Berlin begins in five weeks. The hospitalityInside preparations for the hotel conference are virtually complete: You will find the complete program description today on our Page 1 and within "Network". The 8th "ITB Hospitality Day" stands under one single motto for the first time - "Young": We will present young hotel concepts, young travellers, young CEOs and young distribution channels. We have invited people from half of Europe and Asia. It will be very diverse, interactive and exciting. - The full editorial ...

Dear Insiders,
Parting Chairmen of the Austrian Hotelier Association showed how lobbying works live as the association celebrated its 60th anniversary on Wednesday. Before the eyes and ears of Austria's Federal President and Minister for the Economy, Peter Peer and Sepp Schellhorn gave an irony-packed political speech making the position of the industry crystal clear. Everyone laughed and thought at the same time: there are competent leaders in other countries, though who would have the courage to do that?
A few hours later the new Chairmen Michaela Reitterer and Gregor Hoch took to the stage and certainly gave the impression that Austrian tourism would retain its position in Europe. A report from Vienna.
And news from Berlin: There, the ratings agency Moody's has caused a stir surrounding the Adlon financier Anno August Jagdfeld. The agency warned of a possible default by the Hotel Adlon. Jagdfeld also restructures Fundus Group.
Kempinski, the Adlon operator, has meanwhile joined the list of pilot companies for the new American last minute app "HotelTonight" which according to revenue managers tops the apps from HRS and JustBook. For us, also a reason to ask the two providers about the current state of play.
Ringhotels also looks back on its past this week as well a forward into the future: The company will become 40 years old today. Three women have left their stamp on the consortium over the last two decades and have navigated the many medium-sized member hotels through the finer points of distribution and marketing. At the moment though, the private hotels are struggling with different problems.
In our "Small Chains" series this week, we present H'Otello, and among other news, you'll find information on movement on the transaction market, hotel balance sheets and more. – The full editorial…

Dear Insiders,
For Sir Rocco Forte, the year hasn't begun so well: In February, a new operator will take on "his" hotel in Prague; he decided - unwillingly - to make an exit. Real challenges, however, face other hotels. It looks as if high leases, his inconsistent location strategy and inflated self-confidence are now making themselves felt – and with a vengeance. A mood report on the situation of the luxury boutique hotel operator.
Sonu Shivdasani, the pioneer of the eco-luxury chain Six Senses, now seeks his fortune in real estate. Last year, he had to sell the brand due to operational difficulties. Now, Sonu is making a new start with Soneva Private Residences. Details.
Lorenz Adlon also had a vision as proved by the three-part TV series that aired last week on German television. It kept the telephone ringing for an entire week in today's Adlon Kempinski Hotel Berlin. Last news last night in the Adlon context: Again, owner August Jagdfeld fights against new criticism after Fundus Funds' annual report 2011 became public yesterday.
The World War events featured in the "Adlon Saga" are viewed by experts as the cause of German Angst. They also contribute towards Germans looking at demographic change with concern rather than viewing it as an opportunity. The effect of an aging society are summarised today by our colleague Beatrix Boutonnet.
And other news: In Hamburg, InterConti will check out its last guests on February 1 - and will leave the city after 41 years. The hotel will be closed, the real estate will not emerge from the insolvency. Real estate consultants meanwhile report rising transaction volumes over the final quarter of 2012. This can also be viewed as a dangerous signal ...
The year has just begun and the ITB Berlin is moving ever closer. If you want to be right in the thick of things in the middle of Hall 9, we recommend a table at our joint stand "World of Hospitality". We also have suitable offers for small hotel groups and service providers.
Also, save the date please for the annual ITB reception in Berlin hosted by Cornell and EHL/Ecole hotelière de Lausanne on March 5th. For details see our front page or click the Cornell banner. – The full editorial ...

Dear Insiders,
First and foremost, the hospitalityInside team would like to wish everyone a Happy New Year! What will 2013 bring? Looking back on 2012, we see that the industry has been buffeted by many small issues, and that many battles are fought in areas which have nothing to do with hospitality at all.
The new Steigenberger CEO Puneet Chhatwal has been in office since January. I met him shortly before Christmas. Since then, he has been "looking behind the scenes" for six weeks and has drawn a number of conclusions. He will challenge managers who do not understand competition and profit margins, he questions the grand hotel strategy, and in his view, InterCity is growing too slowly. Chhatwal - a cosmopolitan man with a developer's mindset.
Our update on bed tax and VAT in Germany looks back on 2012 as well as forward to 2013.
In our "Small Chains" section, the developer of Loisium Wine & Spa Resorts explains why she would like to expand outside Austria: "Every small and cult brand can be used to make money today."
Our issue today summarises news from the last few weeks; Orient-Express Hotels is currently seeking "Associates" - similarly structured luxury hotels.
hospitalityInside will appear 47 times this year, hopefully always with hot news and interesting background articles from interviews, trade fairs, conferences and events. We will also continue to build our own trade fair activities: The ITB 2013 is only eight weeks away. Starting into the new year, we are pleased to welcome a new co-exhibitor at our joint stand: meinpep; TUI 4U will join the "WORLD of HOSPITALITY" at ITB. Are you looking for a presence in hall 9? There is still room at our joint stand. More on the front page of our website.. – The full editorial …

Dear Insiders,
How quickly the year has passed again... But are we all capable of keeping the speed? Are we able to reach proper decisions quickly? Many conversations towards the end of the year have centred on these two questions, and I detect an element of scepticism and even despair. All the more positive then is this sentence from a Christmas mail: "It's nice when you can count on your family, friends and business partners." I would agree: Especially because everything seems to be speeding up, confidence will ultimately win through. Despite Facebook, face-to-face business is more important than ever.
hospitalityInside hopes to be able to accompany you once again on this path in the New Year, both online and off. Since we were founded in 2005, we see ourselves as an "information network" in a dual sense. And that our sense was right is proven by the current media change. But we too would like to see more sources of objective and researched reporting. Speed must not be the only deciding factor and "I like it" must not be reduced to a mouse click.
The last edition for the year includes many year-end deals and news, including interesting personalia. As speaker for the German International Hotel Association and for HOTREC, Markus Luthe describes the challenges for 2013. My colleague Beatrix Boutonnet looks back and ahead at hotel property. Furthermore, she cites the ex-Swissair manager and author Rolf Dobelli, who analyses errors in reasoning and who believes: the world is now too complicated for our brain.
We would like to say a heartfelt thank you to all our subscribers for their loyalty and to all our media, event and trade fair partners for their support in 2012! We also thank our own staff, authors, expert and translators... The next edition of hospitalityInside.com will appear on January 11, 2013.